Palantir Technologies Inc (NASDAQ:PLTR) shares are slipping on Wednesday. The company is easing back after a nearly 7% jump on Tuesday fueled by a strong fourth‑quarter earnings beat.
The stock also seems to be caught in a broader sell-off, with the Nasdaq down 2.36% and the Energy sector declining 1.80%.
Earnings Call Takeaways
The company posted revenue of $1.407 billion, up 70% year over year, with U.S. sales soaring 93% and making up more than three quarters of total revenue.
CEO Alex Karp sounded a note of caution on the earnings call. He warned that uneven adoption of AI around the world could hold back growth outside the U.S. While the U.S. and China are moving quickly, he said many Western countries are still hesitant.
Broader Market Pressure Weighs On Tech
Wednesday's pullback appears to be driven more by market conditions than anything company‑specific. Tech stocks are under pressure following heightened geopolitical tensions in the Middle East. According to Reuters, U.S. forces shot down an Iranian drone near a Navy aircraft carrier in the Arabian Sea.
Market sentiment has also weakened. The CNN Money Fear & Greed Index slipped into the "Fear" zone on Tuesday, and major tech names like Meta Platforms Inc (NASDAQ:MSFT) and Microsoft Corp (NASDAQ:MSFT) fell more than 2%.
What Does The Technical Picture Show?
Currently, Palantir is trading 18.8% below its 20-day simple moving average (SMA) and 23.1% below its 100-day SMA, indicating a bearish short-term trend. Over the past 12 months, shares have increased by 31.62%, but they are positioned closer to their 52-week lows than highs, suggesting potential weakness.
The RSI is at 40.30, which is considered neutral territory, while the MACD is below its signal line, indicating bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum, reflecting the current uncertainty among traders.
- Key Resistance: $145.00
- Key Support: $119.00
PLTR Price Action: Palantir shares were down 11.22% at $140.11 at the time of publication on Wednesday, according to Benzinga Pro.
Image: PJ McDonnell/Shutterstock
